One Analysts Sees Bumpy Near-Term Radio Performance

Wachovia Securities' analyst Jim Boyle says the media and communications sector continues to experience relative uncertainty as the availability of capital ebbs and flows. Despite November's 4% radio revenue growth, softness in December spending indicates uncertainty. "This up-and-down behavior is likely to persist, given the stalling out of bookings in December," he states in a new report. He doesn't see a rebound yet for 2005, "with anticipated first-half disruptions due to the inventory-reduction initiative." He believes the initiative to cut inventory and boost pricing power is "commendable." Radio needs approximately to 6 months to re-prove its worth to advertisers, Boyle believes.